Pakistan to Get Tariff Relief Under New Economic Deal with US

In a move towards closer economic cooperation, the United States and Pakistan have signed an agreement to jointly develop Pakistan's oil reserves and reduce tariffs on Pakistani goods being imported into the U.S., officials on both sides confirmed this week.

"We have just made a deal with the nation of Pakistan, where Pakistan and the United States will be working together on the development of their enormous oil reserves. We are selecting the oil company that will head up this partnership." U.S. President Donald Trump tweeted on Wednesday.

Although Trump did not say anything about tariff adjustments, Pakistan's finance ministry said Thursday that the deal "will lead to decrease in mutual tariffs particularly on Pakistani exports to the United States," without offering details.

Key Highlights:

• U.S. and Pakistan have signed a deal to jointly develop Pakistan's vast oil reserves, with a lead oil company to be selected soon
• The agreement includes a reduction in U.S. tariffs on Pakistani exports, offering relief from a previously proposed 29 percent duty
• Officials say the deal marks a new era of strategic economic cooperation, expanding ties in energy, IT, minerals, and cryptocurrency

Pakistani Foreign Minister Ishaq Dar also mirrored Trump's statement, posting on social media that the agreement represented "a new age of strategic economic partnership.”

The agreement follows suspended American tariffs on Pakistani products initially 29 percent, which had been put on hold for 90 days to be negotiated.

"This agreement is the start of a new era of economic cooperation, particularly in energy, mines and minerals, IT, cryptocurrency, and other sectors," Pakistan's finance ministry further stated.

Also Read: China Considers Reducing 125% Tariff on Key US Imports Amid Trade Tensions

The deal comes following high-level talks in recent weeks, such as Dar's discussions with Secretary of State Marco Rubio. "We were close to signing a trade agreement," Dar said last week, citing collaboration on important minerals and mining.

The U.S. trade deficit in goods with Pakistan totaled USD 3 billion in 2024, as increasing American efforts to strengthen ties with South Asian allies and counter China's regional clout continued to gather momentum.